TOKYO; Key TOCOM rubber futures rallied to a two-month high on Wednesday as a fall in the yen on hopes of more monetary easing inspired fund buying and helped the yen-based prices to break through above a psychological ceiling of 270 yen.
Wednesday's news of an agreement by the world's top three rubber producers to keep up a policy of cutting exports had little impact on the TOCOM market, traders said.
"The news is neutral as it is expected," said a manager at a Tokyo-based commodity brokerage.
"Technically, we expect an uptrend toward 300 yen once 275 yen is cleared. That, together with a weaker yen, invited active buying from funds," he said.
The most-active Tokyo Commodity Exchange rubber contract for May delivery settled up 5.5 yen, or 2.1 percent, at 272 yen per kg.
The closing level was the day's high and the highest for any benchmark since Oct. 10.
The top three suppliers, Thailand, Indonesia and Malaysia, also agreed there was no need for additional steps to support prices beyond the current one to cut exports by 300,000 tonnes.
They started cutting exports from Oct. 1, in a plan that runs through the end of March.
The most active Shanghai rubber contract for May delivery closed up 135 yuan at 249,000 yuan per tonne.
The front-month January contract on the SICOM in Singapore was last traded at 286.4 US cents per kg, up 1.7 cents.
In other markets, the US dollar rose to its highest in eight months against the yen late on Wednesday boosted by bets the Bank of Japan will take more aggressive easing steps after a likely victory of the Liberal Democratic Party in the country's election on Sunday.
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